Frauds in any field, lead to the misuse of tax money, cost human lives, pull resources from innovations, and even raise prices of several goods and services. The increasing digitization amongst numerous enterprises across the fraud detection and prevention industry has multiplied the risk of data thefts. Also, the availability of cost-effective connecting devices is contributing to these attacks. Phishing attacks, as well as e-mail frauds, negatively impact businesses of all sizes and that in turn, results in heavy loss of confidential data and finance. That is why payment technology providers have begun focusing on strategic collaborations and development of technologically advanced products to diminish the risks associated with online payment and other related frauds.
In 2010, it was revealed by the Association of Certified Fraud Examiners in a report, titled “Nations on Occupational Fraud and Abuse” that on an average, hyperlaxmedia companies around the world lose 5% of its revenue to fraudulent activities every year. The figure translates to a total fraud loss of more than US$ 2.9 trillion if applied to the 2009 Gross World Product. Due to the economic downturn, several companies have been forced to process assurance, skimp internal control, freeze spending, and cut staff. It has made these companies vulnerable to fraud attacks and risks. Therefore, it is very necessary to understand the types of frauds that may hinder growth of an organization. This article lists out the common fraud types and key developments taking place to battle them in the industry.
Most Common Types of Frauds
- Payroll fraud
- Accounts payable
- Carbon copies
- Duplicate payment
- Duplicate serial numbers
- Inflated prices
- Goods not received
- Excess quantities purchased
- Fixed bidding
- Altered invoices
- Fictitious vendors
BAE Systems Launches NetReveal Platform to Combat Financial Frauds and Crimes
Numerous investigators are under tremendous pressure to develop confident and more advanced intelligent-based solutions to control the rising transactions, a growing number of payment channels, and consumer friction. BAE Systems, a multinational defense, security, and aerospace company headquartered in the U.K., for instance, announced the launch of NetReveal platform in April 2019. It is the company’s latest version of fraud detection and prevention solution that combines the best of human expertise and technologically advanced analytics to allow financial organizations to efficiently battle financial frauds and crimes.
The organizations can do so in today’s environment of rapidly changing financial crime patterns and regulatory requirements. NetReveal is infused with machine learning techniques that further aid in improving operational performance. It also includes Robotic Process Automation (RPA) that helps in the automation of routine tasks. It allows the investigators to focus on high-value work. The company has included real-time detection engine in the platform so that the organizations can keep track of sophisticated fraudsters in all the digitized channels.
Fiserv, Inc. Introduces Two Authentication Services to Detect Malicious Account Activity
Fiserv, Inc., a global provider of financial services technology, based in the U.S., introduced two identity verification, step-up authentication, and consumer authentication solutions in August 2018. These would aid in reducing card fraud in call centers. Step-up authentication extends beyond the common knowledge-based authentication by using a 5-digit code via email, text message, or call that can easily attract fraudsters. Identify verification offers real-time analysis that stimulates actions to help protect an account. It further evaluates the behavior of a high-risk cardholder within the IVR system. This leads to the formation of a layered authentication system that finds the caller’s identity and only then, passes information to other fraud applications.
MeReal Biometrics Teams Up with Unikeys to Develop Fingerprint Card for Cryptocurrencies
MeReal Biometrics Ltd, a provider of biometric solutions based in Hong Kong, announced its collaboration with Unikeys, a developer of blockchain-based biometric wallet in June 2018. The main aim of the partnership is to develop patented and battery-powered fingerprint card for people so that they can use it like any other payment card to store and transact cryptocurrencies with signatures, pin codes, or passwords. The card is named UKey and it would provide complete protection of a person’s cryptocurrencies. The cards can be used on any tablet, payment reader, or mobile phone.